EAX is regulated by CMA which requires all traders to be certified members of the Exchange. As members of the Exchange, all farmers, traders and brokers are subject to EAX trading rules and regulations.

The automated trading platform ensures timely delivery of information and also connects buyers and sellers globally.

“Farmers know the true prices and volumes demanded through the commodity exchange,” said Mr Mathu. He said the EAX has invested in the organisation, development and streamlining of the agricultural value chain in East Africa.

EAX country manager Dr Alfah Kadri said it was within their mandate to formalise trading systems by implementing structure, reforms and processes that make doing business easier.

“We hope all potential and certified members will recognise the value of having structured trading systems in place and act accordingly,” Dr Kadri said.

He added that market data services support the trading on EAX, allowing farmers to be aware of current and historical market prices to make informed decisions about the best time to sell their commodity.

“This mitigates the risk of farmers receiving a low price due to informational asymmetry in the market and greatly increases the chance of full loan repayment,” Dr Kadri added.

Published By: Dr. Kadri Alfah

Photos and videos

Dr. Kadri Alfah

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